Procter & Gamble Q1 2026 Core EPS Up 3%, Meets Analyst Estimates

Procter & Gamble (PG.US) reported first quarter fiscal year 2026 net sales of $22.4 billion, marking a 3% increase compared to the prior year. Core earnings per share (EPS) reached $1.99, an increase of 3% year-over-year, aligning with analyst estimates of $1.9. Diluted net earnings per share were $1.95, rising 21%, primarily due to higher non-core restructuring charges in the prior year.

Segment Performance

The Beauty segment saw organic sales increase 6%, driven by gains in Hair Care and Personal Care from volume growth, innovation, and pricing. Skin Care also contributed positively with mid-single-digit growth due to favorable premium product mix and higher pricing. Grooming segment organic sales grew 3%, fueled by innovation-driven pricing and volume growth, particularly in North America and Europe.

Health Care segment organic sales increased 1%, primarily due to higher pricing in Personal Health Care in Latin America and North America, offsetting volume declines. Fabric & Home Care organic sales remained unchanged, with slight increases in Home Care pricing counteracting volume declines in Fabric Care, mainly in Europe. Baby, Feminine & Family Care also reported unchanged organic sales, as favorable product mix and innovation-driven pricing in Feminine Care and Baby Care were offset by volume declines and merchandising investments in Family Care.

Management Outlook

P&G; maintained its fiscal year 2026 guidance, expecting all-in sales growth in the range of one to five percent versus the prior year. Organic sales growth is projected to be in the range of in-line to up four percent. The company also upheld its core earnings per share growth outlook to be in the range of in-line to up four percent versus fiscal 2025 core EPS of $6.83.

The company anticipates a commodity cost headwind of approximately $100 million after tax and higher costs from tariffs of approximately $400 million after tax for fiscal 2026. Despite these headwinds, P&G; expects to pay around $10 billion in dividends and repurchase approximately $5 billion of common shares. Adjusted free cash flow productivity is expected to be 85% to 90%.